Annual Report 2007 in PDF - Cairn Energy PLC

NOTES TO THE ACCOUNTS
CONTINUED
Group
As at 31 December, the ageing analysis of trade and other receivables, excluding prepayments, is as set out below:
Total Current < 30 days 30–60 days 60–90 days 90–120 days >120 days
$’000 $’000 $’000 $’000 $’000 $’000 $’000
2007
Neither past due nor impaired 246,439 246,439 – – – – –
Past due but not impaired 37,847 – 10 47 3,942 256 33,592
Current and impaired 6,655 6,655 – – – – –
Past due and impaired 75,246 – – – 6 12 75,228
Allowance for doubtful debts (76,925) (6,655) – – (6) (12) (70,252)
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As at 31 December 2007 289,262 246,439 10 47 3,942 256 38,568
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2006
Neither past due nor impaired 96,432 96,432 – – – – –
Past due but not impaired 63,274 – – – 806 780 61,688
Past due and impaired 68,309 – – – – – 68,309
Allowance for doubtful debts (61,979) – – – – – (61,979)
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As at 31 December 2006 166,036 96,432 – – 806 780 68,018
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The movement in allowance for doubtful debts individually or collectively impaired is as set out below:
2007 2007 2006 2006
Trade Joint Venture Trade Joint Venture
receivables debtors receivables debtors
$’000 $’000 $’000 $’000
As at 1 January 40,169 21,810 19,995 –
Amounts written off during year* (8,164) – (1,100) –
Increase in allowance capitalised in the Balance Sheet – 19,504 – 18,478
Increase in allowance recognised in the Balance Sheet* – – 20,000 –
Increase in allowance recognised in Income Statement 2,071 1,535 1,274 3,332
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As at 31 December 34,076 42,849 40,169 21,810
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* The movements during the period relate to amounts with corresponding balances in trade receivables, deferred income or
other creditors in the Balance Sheet and therefore do not affect the Income Statement.
In determining the recoverability of a trade or other receivable, the Group carries out a risk analysis based on the type and age
of the outstanding receivable.
Included in the allowance for doubtful debts are individually impaired Joint Venture debtors with a balance of $42.9m
(2006: $21.8m). These predominantly relate to outstanding Rajasthan cash calls which are currently being pursued by
Cairn India management.
CAIRN ENERGY PLC ANNUAL REPORT 2007 111